Payroll formulas are used to calculate federal, state, or local payroll deductions, additions, or exceptions. They can contain limits, percentages and gross pay adjustment tables.
You must subscribe to a plan that includes payroll to use and set up payroll tax formulas within Sage 50.
Sage 50 uses two types of tax formulas:
- Sage-Maintained Formulas: These are pre-defined formulas containing federal, state, and some local tax calculations maintained by subscribing to a plan that includes payroll.
- User-Maintained Formulas: These formulas contain local and customized calculations that you maintain. Typically company formulas include state unemployment rates, 401(k) contribution scenarios, accrued vacation formulas, and so on.